Investing during market volatility
Here are some helpful tips for you, the consumer and investor, on how you can weather the ups and downs of the financial markets:
- Be patient and don't panic. Markets can eventually recapture losses, reaching and surpassing former levels. This can present opportunities for long-term investors.
- Work with an advisor who is focused on helping you achieve lifetime financial security. For consumers with well-balanced, disciplined investment plans, and who have taken the risk of market volatility into account when creating their investment plans, such volatility should have a minimal impact on their long-term goals.
- Look for guarantees. For the risk-adverse, there are products on the market which are guaranteed. Segregated funds are a good example of this, and these guarantees can be an important component of helping achieve lifetime financial security. This is particularly true in retirement where market fluctuations have a bigger impact because assets are being withdrawn at the same time.
- Diversify. A diversified portfolio, with a variety of investments, can carry less risk. It's less likely that the whole portfolio will decrease in value. For clients with proper asset allocation and disciplined investment plans, these short-term events have a minimal effect on long-term goals or a well-balanced financial plan.
- Markets are cyclical. A dip in the markets can occur, because values rise and fall, then rise again, based on a variety of factors. Investors who have soundly diversified their portfolios and are prepared to ride out the peaks and valleys in stock market values may benefit in the long term.
What do you want for your future? When you’re ready to create or review your financial and retirement plans, you’ll want to check out My plan.